Crypto ETF Landscape Heats Up: Australian Bitcoin ETF Buys the Dip, 21Shares Pursues US Solana Listing

By Aaron Feuerstein June 29, 2024 In Australia, Bitcoin, ETF, SEC, Solana
  • Monochrome Bitcoin ETF excels amid market instability, now holding 65 BTC valued at AU$5.98 million.
  • 21Shares files for a Solana ETF in the US, with little chance of approval soon, influenced by US presidential outcomes.
  • The approval of the Ether Spot fund seems to be delayed by a week due to operational reasons at the SEC.

Amid a shaky Bitcoin price performance and another week with net outflows of funds out of the US Spot Bitcoin exchange-traded funds (ETFs), one particular ETF is doing rather well. The Monochrome Bitcoin ETF with the ticker IBTC keeps on accumulating Bitcoin.

Related: Aussie Analysts Decode Three Key Factors Behind Bitcoin’s Recent Drop to $60K

As per the latest available figures IBTC now holds 65 BTC at a value of AU$5.98m.

After the ETF listings in the United States, other jurisdictions such as Hong Kong and London followed with spot funds. In June, Sydney-based Monochrome Asset Management added the first Australian ETF to directly hold BTC.

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The fund seems to be buying the dip as BTC struggles to stay over the US$60K (AU$89.8K) mark. The fund is listed on the smaller CBOE exchange, and additionally, Australia has just received VanEck’s VBTC, which has commenced trading on the Australian Stock Exchange (ASX).

Second US Filing for Solana ETF Submitted

Meanwhile, over in the States, 21Shares has just filed an S-1 application with the United States Securities and Exchange Commission (SEC) for trading of a Spot Solana ETF. The filing comes only a day after VanEck beat everyone else to the race.

The filing is for trading of a fund and usually fund managers file for a listing first, as was the case with the Ethereum funds.

The ETF, which would trade on the Cboe BZX Exchange and be custodied by Coinbase, will not stake SOL nor validate the network.

Most analysts think it is unlikely that a Solana fund will be approved anytime soon. Bloomberg Senior ETF analyst Eric Balchunas said “the odds of a Solana ETF being approved in next 12mo are tied at the hip to the odds of a change in POTUS”.

After a disastrous debate by Joe Biden, many feel that change is becoming more likely – Presidential hopeful Donald J Trump has recently expressed his support for crypto. It is likely that if he regains office, we will see a Solana ETF approval in 2025.

Ethereum Approval Could Be Delayed: Analyst

The other ETF on everyone’s mind is of course the Ether fund. While applicants had their listing approved earlier, these Spot Ethereum ETFs are now awaiting their S-1 approvals to start trading.

Related: Kaiko Research Highlights Bitcoin ETFs’ Significant Impact on Spot Market Structure and Liquidity

Initially, market observers had eyed July 1 for a start, but Balchunas has revised that target to July 8. He said the SEC has taken extra time this week for a detailed review process, which involved making slight adjustments to the applications.

Additionally, the upcoming US holiday has impacted the schedule, as next week is expected to be slower due to reduced staffing.

Updated 1 July 2024, to reflect that VanEck’s fund has commenced trading on the ASX.

Aaron Feuerstein
Author

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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